When people think about insurance, the first thing that pops into their mind is automobile insurance. This is because in the majority of the states in the United States, having automobile insurance is required by law. Others may think about health insurance, which now is also required in some form or another in the United States.
However, one of the biggest types of insurance that is sold in the United States is business related insurance. The reason why business insurance is so popular is that in the United States the sad reality is that a lawsuit is just around every corner. There are legitimate accidents that take place, which in hindsight reflect the negligence of the business owner and entitles the plaintiff to financial compensation. Then there are people who exploit loopholes in the law or look for ways to receive ill-gotten financial compensation through litigation.
The problem is that regardless of if the negligence or accident is caused by the fault of the business or if the perceived negligence stems from the inventive mind of someone looking to make a quick buck off a company, the financial losses that a business can incur as a result of a lawsuit can not only bankrupt the company, but it can also bankruptcy individuals who own the company.
For this reason, when talking about business insurance, a motto to remember is: It only takes one. Basically, what this means is that it only takes one broken contract, one mishandled confidential file, or one accident to completely and totally ruin your business.
Some business owners mistakenly believe that if they form a corporation, they are excluded from any personal financial liability. Unfortunately, every day individuals with this mistaken belief are forced to see the harsh reality that even if their business is incorporated, their personal finances may be in jeopardy.
In addition to purchasing general business insurance, it is a good idea to purchase insurance that is particular to the type of work you do. For example, construction workers may want to purchase insurance that pertains to their field, others may want to get look into captive insurance services. The point is to make sure that you have insurance, you have the right insurance, and you have enough insurance to cover any potential liabilities. When it comes to insurance, you can never have too much.